The Rs 2,244 crore issue was the largest that stock markets have witnessed so far this fiscal year.
Computer Age Management Services (CAMS) stocks made their stock market debut today at Rs 1,518 per share, translating to a 23.41% premium over the upper end of the price band of the issue. However, soon after making their debut on Dalal Street, shares were seen slipping to trade at Rs 1,415 per share. CAMS IPO had offered shares at Rs 1,229-1,230 per share. The mutual fund industry major was well received by investors, subscribing to the issue 46.93 rimes at the end of the three day bidding process last week. The Rs 2,244 crore issue was the largest that stock markets have witnessed so far this fiscal year.
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The issue saw massive subscription from all the categories of investors. Non-institutional investors (NII) bid for the issue the most, subscribing their portion 111.85 times while Qualified Institutional Buyers (QIB) subscribed their portion of the issue 73.18 times. Retail investors had oversubscribed their portion of the issue in less than three hours of the initial day of bidding and at the end of the subscription window had bid for their portion 5.54 times. With this, 1,28,27,370 equity shares of the mutual fund registrar & transfer agency service provider make their stock market debut.
CAMS IPO included just an offer for sale (OFS) from existing shareholder — NSE Investments — a subsidiary of the National Stock Exchange. NSE Investments sold its entire 37.48% stake in the company. Great Terrain Investments, the promoter of CAMS, has also trimmed its stake in the company by 12.6% through a pre-IPO deal to SBI MF, ICICI Pru MF, HDFC MF, SBI Life, IIFL AIF, Acacia Partners, Ashoka Trust, Edelweiss AIF, according to IIFL Research.
Being a strong player in the mutual fund industry, with 70% market share. “MFs is the key segment for the company and accounts for 85-90% of its revenues. Within the MF industry, CAMS is the largest RTA, with 70% market share (based on the average Jul-2020 AUM of the MFs it services) in a duopoly market,” said IIFL Research in an IPO note. CAMS handles RTA business of 16 of the top 41 mutual fund houses in India. “At Rs1,230/share (IPO price), CAMS is priced at 35x FY20 EPS, at a 10-15% discount to listed AMCs, Exchanges and Depositories,” IIFL added.
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